unless the individuals affected desire it. The program must permit changes in accordance with a rapidly changing, dynamic economy. Flexibility also is necessary, as all phases of the program may not proceed at the same rate. As an example, it may be necessary to spend more than the percentages authorized the first few years for the acquirement of land. An adequate land base is, of course, essential to effective use of funds for cattle and cash loans. As the program proceeds, and the land base is for the most part acquired, it will be necessary to spend more than the percentages authorized for the acquirement of livestock and for cash loans. As another example of what may occur an individual may prefer to obtain a cash loan with which to purchase land, rather than for the corporation to purchase the land and sell it to him on a deferred-payment basis. Granting of such a preference, would result in an increase in the amount needed under section 7, and a decrease in the amount needed under section 4. Section 9 authorizes an appropriation of not to, exceed $5,000 annually to make grants to Indian boys and girls to assist in their educational advancement. It is estimated that approximately 50 boys and girls will receive educational loans from the original amounts provided therefor under section 7, and that from 12 to 15 additional loans will be made from repayments annually. Experience has shown that where loans exceed $2,000 for a 4-year course, borrowers become discouraged, and it usually is not advisable to lend more than this amount. Unless boys and girls have some other assistance, however, $2,000 is insufficient for a 4-year course. Efforts will be made to have the parents pay some of the expenses wherever it is possible for them to do so. Where this is impossible, grants will be made to supplement loans in order to keep indebtedness under $2,000, except in unusual instances. Section 10 authorizes a total of $915,000 for grants to the corporation. The corporation, in turn, will make grants to its members. This amount is necessary if the rehabilitation program is to be successful, and the Federal Government is to be released from responsibility for and supervision of these Indians. It also is essential in order to protect the loans which the act authorizes. Although the amount appears large, in the long run it will be less expensive than the present system which has resulted in so much misery among and humiliation of these people. The Indians must understand that any amounts loaned must be repaid. This understanding, however, must be accompanied by some possibility of making repayment Very few of the potential borrowers from the corporation have any working capital. They will have very little security to offer other than recoverable chattels purchased with loans or the land purchased from the corporation. Generally, loans will have to be made on the basis of character, industry, and plans of the enterprise being financed. It is estimated that $125,000 in grants will be required to assist 50 families who desire to leave the reservation. Loans totaling an estimated $100,000 will be made to these families. Most of them will require subsistence for a considerable period during resettlement, and it will be necessary to subsidize them with part of the cost of their new homes if they are to be settled in new localities, participate in community activities, become a part thereof, and not be burdened with excessive debt. Although the amount of such grants is large, it will be less expensive in the long run than to burden these families with heavy debt which might result in discouragement and failure of the efforts at rehabilitation. It is estimated that $790,000 in grants will be required in connection with land purchases. If the 140 families who plan to engage in agriculture (60 remaining on the reservation and 80 off the reservation) assume responsibility for repayment of all costs of their rehabilitation, including land, machinery, equipment, livestock, etc., the percentage of failures will be much higher than if the debt can be scaled down and placed somewhere within the ability of the families to pay. Two hundred and ninety thousand dollars of this amount will be used to purchase approximately 15,840 acres of land belonging to Turtle Mountain allottees, which has never been used by the allottees, and which can be used by the Rocky Boy's Indians after appropriate adjustments in the land pattern are made. Five hundred thousand dollars will be used to subsidize other land purchased, for which loans of $1,500,000 are contemplated. The average grant will approximate one-third of the loan. Section 11 provides that tribal funds now on deposit, or hereafter placed to the credit of the corporation in the Treasury, shall be available for such purposes as may be designated by the business committee and approved by the Secretary of the Interior or his authorized representative. This provision will grant to the corporation and its members greater responsibility for their own welfare. It is conceivable that the corporation may wish to use its own limited funds for certain purposes connected with its economic development program. If an appropriation of funds from the corporation's Treasury account must be awaited each time such use is proposed, discouragement and loss of opportunity easily may result. Most of the income of the corporation is no longer deposited in the Treasury, and this is a minor provision. As of April 15, 1949, the corporation had on deposit in the United States Treasury a total of $258.62. During the fiscal year 1948, only $18 was deposited. Section 12 authorizes the appropriation of $35,000 for the fiscal year 1950 for administrative and technical services and facilities necessary for carrying out the purposes of the act. It is estimated that the following personnel will be employed with these funds: 1 credit officer, CAF-9_ 1 land field agent, CAF-9. 1 extension agent, P-3.. Estimated lapses - - $4, 479. 60 4, 479. 60 4, 479. 60 4,855. 80 8, 172, 00 5, 600.00 4, 000. 00 36, 066. 60 1, 066. 60 35, 000. 00 This section also authorizes appropriations after the fiscal year 1950 of such sums as may be necessary for administrative and technical services and facilities. It is not anticipated that personnel requirements for credit, land, placement, and agricultural assistance will exceed that authorized for 1950. The program for economic rehabilitation of these Indians will be expensive. Of the amounts authorized by this bill, over 75 percent are reimbursable, and in the long run the cost to the Federal Government will be less than to continue the present system under which decades will pass before the Government's responsibility to these Indians will be discharged, and under which increased appropriations will be necessary in order to relieve the human suffering and humiliation on the reservation. The program for the rehabilitation of these Indians has been worked out by the Indians themselves, with the assistance of the agency staff, and indicates the thinking which these Indians are doing regarding their own welfare. The following communication dated July 27, 1949, states the Department's approval of H. R. 5570. DEPARTMENT OF THE INTERIOR, OFFICE OF THE SECRETARY, Washington 25, D. C., July 27, 1949. MY DEAR MR. PETERSON: Reference is made to your request for a report on H. R. 5570, which has been substituted for H. R. 4318, a bill to promote the rehabilitation of the Chippewa Cree Tribe of Indians of the Rocky Boy's Reservation, Mont., and for other purposes. Under date of May 17, 1949, I recommended the enactment of H. R. 4318. The substitute bill H. R. 5570 is, in general, satisfactory to this Department, and I recommend its enactment with the following amendment: Section 6, line 21, strike the figure "10" and insert the figure "20". As pointed out in my report on H. R. 4318, a critical economic situation exists among these Indians. Their need for some assistance on a nonreimbursable basis was pointed out in my report on H. R. 4318. The committee on Public Lands unanimously recommends that H. R. 5570 be enacted. RATIFYING AND CONFIRMING ACT 251 OF THE SESSION LAWS OF HAWAII, 1949 August 1, 1949.—Referred to the House Calendar and ordered to be printed Mr. PETERSON, from the Committee on Public Lands, submitted the following REPORT (To accompany H. R. 5489] The Committee on Public Lands, to whom was referred the bill (H. R. 5489) to ratify and confirm Act 251 of the session laws of Hawaii, 1949, having considered the same, report favorably thereon without amendment and recommend that the bill do pass. EXPLANATION OF THE BILL The purpose of this bill is to ratify legislation enacted by the legislature of the Territory of Hawaii extending the franchise of the Hilo Electric Light Co. Ltd., to include the district of North Kohala. No expenditure of Federal funds is requested. Congressional approval of any franchise issued by the Territorial Legislature is prescribed in the Hawaiian Organic Act, and therefore is necessary in this instance. The residents of North Kohala do not have a public-lighting system. The area badly needs such service. The Department of the Interior recommends that H. R. 5489 be enacted. Pertinent comments from the favorable report of the Department are as follows: H. R. 5489 would ratify and confirm Act 251 of the session laws of Hawaii, 1949, which extends the franchise of the Hilo Electric Light Co., Ltd., to include the district of North Kohala Section 55 of the Organic Act of Hawaii (48 U. S. C. 1946 ed.. sec. 562) requires congressional approval of any franchise issued by the Territorial legislature This provision also applies to any amendment to a franchise extending the area of its operation. The extension of the existing franchise of the Hilo Electric Light Co. to include the district of North Kohala would enable that company to provide electric light and power to an area which is in need of such service I recommend that this legislation be enacted. The Committee on Public Lands unanimously recommend that this bill be enacted. |